Zynga Posts $52.7M Net Loss in Q3

10 2012 Thursday

Despite a net loss of $52.7 million and the recent layoffs of five percent of the company’s workforce, Zynga shares climbed more than 14 percent Oct. 24

The social gaming site posted poor third-quarter numbers, despite the company pulling in more than $316 million, surpassing analysts’ expectations of $300 million. The company, in the first nine months of 2012, lost $160 million.

“While the last several months have been challenging for us, Zynga remains well positioned to capitalize on the growth of social gaming,” Mark Pincus, CEO and founder of Zynga, said in a statement. “We’re implementing a number of steps to drive long-term growth and profitability.

“The successful launches of FarmVille 2 and ChefVille in the third quarter demonstrate that when we develop great games, our large player audience engages. It’s more clear than ever that along with search, shop, and share, play is a fundamental pillar of the Internet, and Zynga continues to be the leader.”

The online gambling site’s higher-than-expected revenue number is due to its $200 million stock buyback.